USD/CAD Spread Betting


cf_market_short Trading Guide

The CleanFinancial guide to USD/CAD spread betting.


Live USD/CAD Chart & Prices

We have indicative daily spread betting prices above, please see USD/CAD prices.

The following CFDs chart provides a helpful overview of the USD/CAD rate.


The above Plus500 chart is typically based on the USD/CAD futures market (not the daily market).

If you’d like to analyse live financial spread betting charts/prices for USD/CAD, you will need to apply for a spread betting account.

A spreads account would also let you speculate on the shorter-term daily prices. Note that such accounts are normally dependent on credit, status and suitability checks.

If your account application is accepted then you can log in to analyse the live charts and the current pricing. On most platforms, these will be provided for free. The catch? You are likely to receive an occasional sales call or letter from your chosen spread trading company.

If you decide to trade then, before you start, be aware that financial spread trading and CFDs do involve a significant level of risk to your capital and you can incur losses that exceed your initial investment.

Where Can I Spread Bet on USD/CAD?

At the moment, investors are able to speculate on USD/CAD with any of these spread betting firms:



USD/CAD Market Analysis and Trading News

4 April 2018, 11:27am, Updated Canadian Dollar COT Report

The latest Commitments of Traders Report (COT) for the Canadian Dollar has been released by the CFTC, please see our Canadian Dollar COT report below.

Readers should note that we have also updated our Forex COT Summary Report.

Update by Gordon Childs, Editor, CleanFinancial
4 April 2018, 8:48pm, Updated Canadian Dollar COT Report

The latest Commitments of Traders Report (COT) for the Canadian Dollar has been released by the CFTC, please see our Canadian Dollar COT report below.

Readers should note that we have also updated our Forex COT Summary Report.

Update by Gordon Childs, Editor, CleanFinancial

» More forex trading views and analysis.



Advert: USD/CAD Spread Betting, sponsored by FinancialSpreads.com.
You can spread bet on USD/CAD with Financial Spreads.



Where Can I Trade USD/CAD for Free?

Investing in the markets involves an element of risk. Having said that, if you would like to open a free Demo Account, which lets you try financial spread betting, please see below for more details.

When deciding which trading option might work for you, don’t forget that forex spread betting in the UK is free of capital gains tax, income tax and stamp duty*.

If you’re looking for a free forex platform, you should note that you can take a position on USD/CAD with no brokers’ fees, and zero commissions, via:


Free Demo Account

Should you want a Test Account which lets users get to grips with online spread betting, including forex markets like USD/CAD, then you could take a look at:

Each of the above spread betting firms provide a risk free Demo Account which lets investors gain experience with a host of trading orders, try out new trading ideas and review the latest charts.


How to Spread Bet on USD/CAD?

As with a wide variety of global markets, you are able to speculate on foreign exchange pairs, like USD/CAD, to either rise or fall.

If we go to a spread betting site like Tradefair, we can see that they have priced the USD/CAD Rolling Daily market at C$0.97204 – C$0.97234. Therefore, you could spread bet on the USD/CAD forex rate:

  USD/CAD Spread Trading Example Increasing higher than C$0.97234, or
  USD/CAD Spread Betting Example Decreasing lower than C$0.97204

When spread trading on USD/CAD you trade in £x per point where a point is C$0.00010 of the pairs movement. As a result, if you decided to invest £4 per point and USD/CAD moves 36.0 points then that would change your profits (or losses) by £144. £4 per point x C$0.00360 = £4 per point x 36.0 points = £144.

Rolling Daily Forex Markets

One important thing to note is that this is a Rolling Daily Market and so unlike a futures market, there is no closing date. Should your trade be left open at the end of the trading day, it will just roll over into the next day.

Should your FX spread bet roll over then you are normally charged a small financing fee. For a more detailed example see Rolling Daily Spread Betting.


USD/CAD Trading Example 1

So, if we consider the above spread of C$0.97204 – C$0.97234 and assume that:

  • you have analysed your chosen market, and
  • it leads you to think that the USD/CAD rate will increase and move higher than C$0.97234
then you could choose to go long of the market at C$0.97234 for a stake of, for the sake of argument, £4 per point.

So, you make a profit of £4 for every point (C$0.00010) that the USD/CAD FX pair increases above C$0.97234. Of course, it also means that you will lose £4 for every point that the USD/CAD market goes lower than C$0.97234.

Put another way, should you buy a spread bet then your profits (or losses) are calculated by taking the difference between the settlement price of the market and the initial price you bought the market at. You then multiply that difference in price by your stake.

As a result, if after a few hours the foreign exchange rate started to increase then you might think about closing your position in order to lock in your profit. Therefore, if the market moved up then the spread, determined by the spread betting company, might change to C$0.97574 – C$0.97604. You would close your spread bet by selling at C$0.97574. As a result, with the same £4 stake you would make:

Profit = (Closing Level – Opening Level) x stake
Profit = (C$0.97574 – C$0.97234) x £4 per point stake
Profit = C$0.00340 x £4 per point stake
Profit = 34.0 points x £4 per point stake
Profit = £136.00 profit

Trading FX doesn’t always go to plan. With the above, you had bet that the FX pair would rise. Of course, the currency rate can also decrease.

If the USD/CAD market had started to drop then you might decide to settle/close your spread bet in order to restrict your losses.

Should the market drop to C$0.96942 – C$0.96972 then this means you would sell back your position at C$0.96942. If so, this would result in a loss of:

Loss = (Closing Level – Opening Level) x stake
Loss = (C$0.96942 – C$0.97234) x £4 per point stake
Loss = -C$0.00292 x £4 per point stake
Loss = -29.2 points x £4 per point stake
Loss = -£116.80 loss

Note: USD/CAD Rolling Daily currency market quoted as of 11-Sep-12.


Advert: USD/CAD Spread Betting, sponsored by FinancialSpreads.com.
You can spread bet on USD/CAD with Financial Spreads.



How to Spread Bet on US Dollar - Canadian Dollar

How to Spread Bet on US Dollar – Canadian Dollar – Example 2

Logging onto FinancialSpreads.com, you can see they are currently pricing the US Dollar – Canadian Dollar Rolling Daily market at C$0.97410 – C$0.97440. As a result, you can put a spread bet on the US Dollar – Canadian Dollar rate:

  US Dollar - Canadian Dollar Spread Betting Example Increasing higher than C$0.97440, or
  US Dollar - Canadian Dollar Spread Trading Example Decreasing lower than C$0.97410

Whilst financial spread betting on US Dollar – Canadian Dollar you trade in £x per point where a point is C$0.00010 of the pairs movement. As a result, if you invested £4 per point and US Dollar – Canadian Dollar moves 27.0 points then that would alter your P&L by £108. £4 per point x C$0.00270 = £4 per point x 27.0 points = £108.

If we take the above spread of C$0.97410 – C$0.97440 and assume:

  • You have done your forex analysis, and
  • You think that the US Dollar – Canadian Dollar market will increase and go above C$0.97440
Then you may decide that you want to go long of the market at C$0.97440 for a stake of, for example, £5 per point.

Therefore, with this trade, you win £5 for every point (C$0.00010) that the US Dollar – Canadian Dollar pair rises higher than C$0.97440. Conversely, however, you will make a loss of £5 for every point that the US Dollar – Canadian Dollar market falls below C$0.97440.

Looked at another way, if you were to ‘Buy’ a spread bet then your profit/loss is found by taking the difference between the closing price of the market and the initial price you bought the spread at. You then multiply that difference in price by your stake.

With this in mind, if after a few hours the US Dollar/Loonie rate moved higher then you could consider closing your spread bet in order to lock in your profit.

Taking this a step further, if the market rose then the spread might move up to C$0.97742 – C$0.97772. In order to close your spread bet you would sell at C$0.97742. So, with the same £5 stake you would calculate your profit as:

Profit / loss = (Closing Value – Initial Value) x stake
Profit / loss = (C$0.97742 – C$0.97440) x £5 per point stake
Profit / loss = C$0.00302 x £5 per point stake
Profit / loss = 30.2 points x £5 per point stake
Profit / loss = £151.00 profit

Forex trading, by spread trading or otherwise, is not always that simple. With the above, you had bet that the forex pair would increase. Naturally, the FX rate might go down.

If the Dollar/Loonie rate had fallen then you might choose to close your position to limit your losses.

If the spread fell to C$0.97172 – C$0.97202 then this means you would close your trade by selling at C$0.97172. That would mean you would make a loss of:

Profit / loss = (Closing Value – Initial Value) x stake
Profit / loss = (C$0.97172 – C$0.97440) x £5 per point stake
Profit / loss = -C$0.00268 x £5 per point stake
Profit / loss = -26.8 points x £5 per point stake
Profit / loss = -£134.00 loss

Note, the Canadian Dollar is also known as the ‘Loonie’. US Dollar – Canadian Dollar price, correct as of 18-Sep-12.


Advert: USD/CAD Spread Betting, sponsored by FinancialSpreads.com.
You can spread bet on USD/CAD with Financial Spreads.



Canadian Dollar Commitments of Traders Report – 3 Apr 2018 (i)

Futures Only Positions, CME , Code 90741, (Contracts of C$100,000) (i)

Reporting Firms (i) Non-Reportable Positions (i)
Non-Commercial (i)
Commercial (i) Total Reportable (i)
 
Commitments (i) Open (i) Interest Commitments
Long (i) Short (i) Spreads (i) Long Short Long Short Long Short
29,558 61,430 4,822 64,223 31,105 98,603 97,357 127,509 28,906 30,152
 
Changes from 27 Mar 2018 (i) Change in (i) Open Interest Changes from
Long Short Spreads Long Short Long Short Long Short
-3,960 862 136 950 700 -2,874 1,698 -59 2,815 -1,757
 
Percent of Open Interest for Each Category of Trader (i)
Long Short Spreads Long Short Long Short   Long Short
23.2% 48.2% 3.8% 50.4% 24.4% 77.3% 76.4%   22.7% 23.6%
 
Number of Traders in Each Category (i) Total (i) Traders  
Long Short Spreads Long Short Long Short    
28 35 15 27 20 65 61 101    
 
Long/Short Commitments Ratios (i)   Long/Short Ratio
Ratio   Ratio Ratio   Ratio
1:2.1   2.1:1 1:1   1:1
 
Net Commitment Change (i)  
-4,822  

Also see:


Applying Technical Analysis to USD/CAD

Below, an older but nevertheless handy case study on the US dollar/Canadian dollar market by Shai Heffetz, InterTrader, 4-Aug-2011.

From a purely technical analysis perspective, the USD/CAD is currently in a bear market.

If we look at the chart below, we see that the price is well below the cloud of the Ichimoku Kinko Hyo.

In addition, both the blue Kijun Sen and the red Tenkan Sen lines are also below the cloud, further confirming the downtrend. The fact that the Tenkan Sen is below the Kijun Sen is a further indication that the downturn has not yet been reversed.

USD/CAD Daily Spread Betting Chart


Before rushing into a short trade, however, one should take into account that the green Chinkou Span line is currently touching the price of 26 periods ago. Since the 27th of July, the price has started moving upwards and it is currently above the Tenkan Sen and even the Kijun Sen.

A cautious trader would wait for a signal that the price will continue its previous downtrend before opening a short trade. As a minimum, the price should drop below the Kijun Sen and the Tenkan Sen.

If the USD/CAD market closes below the level of C$0.94331, which was the closing price on the 26th of July, we might see new lows forming soon.

On the other hand, should the spread betting price continue to rise and enter the Ichimoku cloud, it would be prudent to wait for a clear signal before doing anything.

If it should close above the cloud for one or two days, it could be time to go long. In this case, the resistance level would move to C$0.9916, the recent high point that we saw on the 27th of June.

For longer-term trades one should remember that the US Dollar has been in a downward spiral against the Canadian Dollar for years.

In fact, as the chart below demonstrates, the price is fast approaching the low of C$0.93590 it reached in October 2007. If it should break through that level, new lows are very likely.

USD/CAD Weekly Spread Betting Chart